AHDB Pork Weekly Export Bulletin

BPEX Weekly Export Bulletin - 13 April 2015

Denmark

Negative interest rates

Forced to shadow the Euro, Denmark has now recorded negative interest rates of -0.75% and a few banks have even started to offer loans that pay interest (with banking costs, the loans are not beneficiary). At least, this is good news for the heavily indebted Danish farmers and consumers. A similar situation exists in Sweden but not to the same extent as in Denmark. (Source, Financial times, various)

Markets

On the European market, fresh hams traded at slightly lower prices this week while other cuts traded at virtually unchanged price levels. The British bacon market continued to be reported as stable. Likewise, steady sales were reported for markets outside Europe including both Japan and China. (Source, lf.dk)

France

Meeting with Mr Stéphane Lefoll

French pig meat industry representatives Guillaume Roué, President of Inaporc and Paul Rouche General Manager of SNCP met with the Agriculture Minister in Paris last week. They requested the implementation of measures, as a pilot test, designed to compensate the competitiveness deficit experienced by processors vis à vis competition from other EU member states. The objective of these measures is to reduce salary costs by 25% to compensate the social dumping exerted by Germany and Spain on the industry which equates to around €10 per pig at abattoir exit. Mr. Lefoll listened but was not able to respond positively, he suggested opening a dialogue with retailers to improve the monitoring of special offers.

More outstanding bills

The difficulties experienced by French pig producers are also felt by feed suppliers. Feed manufacturers in Brittany (Nutrinoë) published a press release on 1 April stating that within three months they recorded a €15m increase in outstanding bills from producers. In 2014, feed manufacturers brought €64 million cash flow to producers by supporting their investments, postponing payments, etc. The situation is deteriorating further, Nutrinoë are advising producers facing difficulties to contact local authorities (prefectures) in order to benefit from emergency support available through “départements”.

TB

Following the discovery of bovine tuberculosis in a wild boar in Sologne region (near Orleans), a screening operation has started on 30 farms in the area. One thousand tests are being investigated and the results will be published in mid-April.

Markets

Pigs: Week 14 was marked by a European pig industry on hold. The Thursday and Friday bank holidays (depending on the Member States) resulted in reduced market activity. However, offers appeared, more or less, well suited to the demand. Prices were stable in Germany, Belgium, the Netherlands and Spain. This week, with the Monday being a public holiday in most countries, a return to higher offers was anticipated, which could leave prices under pressure. However, intra EU demand could be a little better than was seen in March, especially if the weather is warmer. Uncertainties remain, however, for exports. In North America, prices fell last week in the United States as they had seven days earlier in Canada.

Piglets: No major changes were reported last week on the European market. The breeding availability remained relatively low and adapted to current needs. Demand appeared more regular compared to the previous week.

Germany

Action "Tierwohl animal welfare" launched

On 1 April, the registration procedures for this animal welfare initiative began. From now on, pig farmers can register to participate in the initiative around animal welfare. The registration process for poultry holding companies is expected to start from July 2015. (Source, topagrar.com)

German price increase

Despite the loss of two slaughter days over Easter, only a minor surplus of pigs was reported at the beginning of the current week. Due to high demand from slaughter facilities, the surplus was dealt with promptly and available numbers are now barely sufficient to meet demand. Additional impulses are mentioned from the meat market as sales increased significantly during the last week and are still reported to be high as the gastronomy sector and food retailers restock. The warmer weather may also support sales due to increasing demand for barbecue meat. As a result, the German recommended price was increased by €c5 per kg to €1.45 per kg. (Source, AMI)

Netherlands

ForFarmers will go for listing

The feed producer plans a share offer in 2016 to inject new capital. The company posted positive results in 2014 with a turnover of €2.292b and profits of €59.1m (+36.1%). It produced 8.9m tonnes of feed, 5% more than in 2013, with 3.9m tonnes in the Netherlands, 2.8m tonnes in the UK and 2m tonnes in Germany/Belgium. The pig sector experienced the highest growth. (Source, Boerderij Vandaag)

Willy Selten found guilty

Dutch meat trader, Willy Selten, has been found guilty of fraud involving 336 tonnes of horsemeat mixed with beef and sentenced to two and a half years in jail by a Dutch court this week. (Source, BBC)

Spain

Russia

Fund to boost production

According to the Russian Ministry of Agriculture, the government has allocated, from the Federal Budget, RUB570b (US$10.8b) for import replacement in the agricultural sector. According to the Ministry plan, these funds will boost the development of domestic meat production and will result in reducing meat import to Russia by 67.8% by 2020. (Source, ria.ru)

Ukraine

No price lift for Easter

Despite the expectations of pork producers and processors, there was no significant price increase in the lead-up to Easter (celebrated in Ukraine on 12 April). Therefore, on 6 April the price range widened and prices for pigs in liveweight terms in Ukraine were UAH28-32.5 per kg (US$1.19-1.39 per kg). (Source, pigua.info)

Lower pig population

The pig population in the Ukraine at 1 March 2015 decreased by 351,600 (4.6%) compared with the same time a year ago and totalled 7,278,835 pigs. The number of pigs kept in private households decreased more significantly (-300,000 head) while the decrease in commercial farms was not so dramatic. (Source, pigua.info)

Belarus

Fall in pork production

According to the Belarussian National Statistics Committee, pork production in Belarus decreased to 11,200 tonnes in February 2015 from 12,000 tonnes in the previous month and 14,000 tonnes in February 2014. (Source, pigua.info)